I have been unable to use my iTunes for the last week since I downloaded the new update. I got a ton of error messages saying that iTunes wasn't installed properly, apple mobile device failed to start, verify that you have sufficient privileges to start system services. (Even though I am the only user on my computer and an Admin). Apple mobile device support would not start, even if I went into services and manually attempted to start it. After spending about 10 hours looking for solutions and a call to apple support I was about ready to give up.
I run my iTunes on Windows Vista and solved the problem by using a modified form of soypisto75's method.
I ran into problems when apple mobile device support was still somehow hiding on my computer even though I uninstalled all components of iTunes and Apple software in Add/delete Programs.
If you go into services and find apple mobile device support and click on properties, it will show a pathway to where it is storing the files.
You should check in C:/ Program files, Common Files, Apple
This is where I found the last bit of the apple files that were interrupting the download. After uninstalling all Apple programs, look in Common files and DELETE THE APPLE FOLDER.
Try downloading iTunes again and then Run as Administrator. Before you click "finish" to end the install, plug in your iPhone to make sure the driver software installs.
I couldn't believe that it actually worked and I'm thankful for how helpful everyone has been on here. I hope this helps!